Group project company’s name dat xanh group joint stock company (dxg

Through ratio analysis, we have a defined appreciation of the Profitability, Liquidity, Leverage and Turnover positions of the company.. Real Estate Investment One of the primary activit

HO CHI MINH UNIVERSITY OF TECHNOLOGY OFFICE FOR

INTERNATIONAL STUDY PROGRAMS

- SCHOOL OF INDUSTRIAL MANAGEMENT -

May 12, 2021

se &

GROUP PROJECT

Company’s name: Dat Xanh Group Joint Stock Company (DXG)

Subject: Corporate Finance

Lecturer: Nguyen Thu Hien

Group’s members:

1 Vii Quéc Hai Dang - 1850011 20%

2 Huynh Hiru Khang - 1852441 20%

3 Nguyễn Hữu Khương - 1952311 20%

4 Mai Tâm - 1952437 40%

APPENDIX

| INTRODUCTION

1 Company’s Profile

2 Ownership Structure

3 Fields of Business

3.1 Real Estate Investment 3.2 Real Estate Services 3.3 Construction

Il ANALYSIS ABOUT FINANCIAL STATEMENT

1 Five Financial Ratios

2 Trend Analysis: From 2016 to 2018

3 Industry-benchmark Analysis

4 Company’s Financial Performance

Ill ANALYSIS ABOUT BETA OF DAT XANH GROUP

IV REFERENCES

ABSTRACT

The main objective of this study is to analyse the financial performance of a joint stock company The company chosen for this purpose is Dat Xanh Group (DXG) and the same is compared with the industry by the average data of three its competitors - Novaland Group Corp, NLG Corp and Vinhomes JSC This paper focuses on analyzing the ratios and the beta coefficient Thus, it demonstrates the methods used to estimate the ratios and beta on DXG through a combination of mathematical and statistical tools Some charts and tables are also used for better description and understanding Through ratio analysis, we have a defined appreciation of the Profitability, Liquidity, Leverage and Turnover positions of the company

In addition, the data is almost based on their annual reports from 2016 to 2018 and the stock price in 2020

The results suggested that the by following this method exhibited in the paper, we found that

in three years from 2016 to 2018, Dat Xanh Group's business performance was quite stable Furthermore, the company had little difficulty in paying debts and related costs and was also gradually able to control them

I INTRODUCTION

1 Company’s Profile

Name: Dat Xanh Group Joint Stock Company

Head Quarter: No.2W Ung Van Khiem Street, Ward 25, Binh Thanh, HCMC

Tel: +84 28 62525252

Fax: +84 28 62853896

Dat Xanh Group was established in 2003 with three core business areas: Investment - Construction - Service

Corporate History

2003

» Dat Xanh was established with the charter capital of 0.8 billion VND

» Scope of activities: Distribution of real estate projects

2007

» Transformed into joint - stock - company

>» Transformed from Real Estate Distributors to Real Estate Investors and Developers

2009 - 2010

>» Listing DXG code on HOSE

>» Become a real estate company with the most extensive distribution system in Vietnam

2014

>» Award for High-Quality Product (Sunview Town project)

>» Top 3 best apartments in Vietnam (Sunview Town project)

2015

> Announced 20 new projects and held the “Dialogue with Investors” seminar

>» Launched a line of luxury commercial apartments called Lux with the Lux City ( District

7) as the 1° project

» Top 100 fastest growing enterprises in Vietnam

>» Top 50 best listed companies in Vietnam (according to Forbes Vietnam)

2016

> Chartered capital increased to 2,530 billion dongs

> Top 10 leading Real Estate Developers in Vietnam (BCI Asia Awards)

2018

» Renamed to Dat Xanh Group joint - stock - company

> Top 500 largest enterprises in Vietnam in 2018 (VNR)

> Establish a network of subsidiaries in the South West region, Long An, Thai Nguyen,

2 Ownership Structure

THE ANNUAL GENERAL MEETING

* Inspection Committee

BOARD OF DIRECTORS

Board of External Affairs | « * Investment Committee

BOARD OF MANAGEMENT

Board of Assisstant-Secretary

Board of Communication

Board of Intenal Control

Board of Bidding / Supplying

investment Project Sales and Finance - O t System

— Development Marketing HR Division peranons Development

3 Fields of Business

3.1 Real Estate Investment One of the primary activities of Dat Xanh Group is concentrated on the segment of mid to high-end residential products This is currently the most in demand in the real estate industry

The real estate product lines that Dat Xanh Group is participating in are: Residences, Urban area and Complex area, Hospitality service and finally Leasing Dat Xanh Group is the first

to implement a real estate development concept model In which The Group serves as the core nucleus, surrounded and connected by satellite components known as Investment

Owners, Financial Organizations, Construction Partners, and Material Suppliers in purple to optimize the value and mitigate the risks in all relevant sectors

3.2 Real Estate Services During the period of operation, Dat Xanh Group always strives to provide customers with the best real estate products and professional services Since its inception, the primary sector has been real estate services

Currently, the brokerage market share of Dat Xanh Services is constantly increasing Dat Xanh Mien Bac, in particular, accounts for 41% of the market share in the North; the market

share in Ho Chi Minh City is about 16% and in other markets, such as Dat Xanh Mien Dong,

Dat Xanh Mien Tay, Dat Xanh Premium in Dat Xanh Services system all continue to occupy overwhelming market share

3.3 Construction One of the factors in the Group's strategy to ensure the chain of project development activities as one of the importance in determining the services provided to partners in the construction industry

Dat Xanh contributes to construction solutions appropriate for works, infrastructure, and value-added to partners, based on its extensive expertise and capacity Under the Design & Build kit, the Group offers complete project implementation services from design to development and operation Furthermore, Dat Xanh also excels at providing strategies for value enhancement, divisional harmonization, as well as energy and investment efficiency

ll ANALYSIS ABOUT FINANCIAL STATEMENT

1 Five Financial Ratios

1.0 | Liquidity Ratios

2.0 | Asset Management Ratios

2.1 | Inventory Turnover Ratio 1.58 0.34 0.44

2.2 | Fixed Asset Turnover Ratio 2.68 2.02 2.43

2.3 | Total Asset Turnover Ratio 0.45 0.28 0.34

2.4 | Account Receivable Turnover Rat 1.34 0.84 0.83

2.5 | Average Collection Periods (days) 271.58 436.16 359.92

3.0 | Leverage Ratios

3.1 | Debt Ratio 0.36 0.55 0.55

3.3 | Times Interest Earned Ratio 25.66 21.46 11.02

3.4 | Cash Coverage Ratio 25.92 22.16 13.08

4.0 | Profitability Ratios

5.0 | Market Value Ratios

5.2 | Book Value per Share (VND) 15,362.00 | 17,721.00 17,753.00

2 Trend Analysis: From 2016 to 2018

As can be seen in the table, the liquidity and asset management ratios both decreased slightly

over the period shown, while the profitability and debt ratios increased

In 2016, the current ratio was 3.03 and the quick ratio was 2.43 After two years, these ratios began to fall, with both figures dropping to 2.43 and 1.41, respectively The NWC/TA ratio,

on the other hand, remained nearly constant over the time shown

The debt ratio, equity multiplier, times interest earned ratio, and cash coverage ratio are the four components of the leverage ratio In 2018, the debt ratio and equity multiplier increased nearly twice as much as they did in 2016

Profitability ratios comprise three ratios: Net profit margin, Return on Assets and Return on Equity According to the data, there was a minor improvement in the figures for both Net Profit Margin and Return on Equity, while the value of ROA remained relatively constant

Moving on to Market Value Ratios which aid in evaluating the financial performance of the publicly traded companies and play a critical role in identifying stocks that are overvalued, undervalued, or priced reasonably Two main elements of Market Value Ratios (Price Earnings ratio and Book value per share) encountered significant volatility The figure for Book value per share rose marginally from 15362 VND in 2016 to 17753 in 2018, while a twofold increase was witnessed in the figure for Price Earnings ratio between 2016 and 2018

3 Industry-benchmark Analysis

1.0 | Liquidity Ratios

1.3 | NWC to TA 0.49 0.33 040 | 0.48 | 0.04

2.0 | Asset Management Ratios

2.1 | Inventory Turnover Ratio 0.44 0.31 0.78 | 0.61 0.56 2.2 | Fixed Asset Turnover Ratio 2.43 0.71 1.36 | 1.54 1.20 2.3 | Total Asset Turnover Ratio 0.34 0.22 | 0.32 | 0.36 | 0.30

2.4 | Account Receivable Turnover Ratid 0.83 26.60 4.05 | 14.03 | 14.89

2.5 | Average Collection Periods (days) | 359.92) 111.37 409.29) 192.22) 237.63 3.0 | Leverage Ratios

3.1 | Debt Ratio 0.55 0.71 060 | 0.45 | 0.58

3.2 | Equity Multiplier 2.21 3.42 2.49 | 2.08 2.66 3.3 | Times Interest Earned Ratio 11.02 2.42 | 8.28 | 10.47) 7.06 3.4 | Cash Coverage Ratio 13.08 | 268 839 | 3.15 | 4.74 4.0 | Profitability Ratios

4.1 | Net Profit Margin 0.37 0.21 0.38 | 0.25 | 0.28

4.3 | Return on Equity 0.28 | 0.16 | 0.31 | 0.19 | 0.22

5.0 | Market Value Ratios

5.1 | Price Earnings Ratio 6.63 16.44 | 14.87 | 6.51 | 12.61

5.2 | Book Value per Share (VND) 17,753) 21,990) 14,374! 17,753) 18,039 The information from Dat Xanh Group and the average industry market are included in the table above To begin with, Dat Xanh's three liquidity ratios are all substantially higher than the average For example, its current ratio was 2.31, which was higher than the average of 2.22 in three other real estate firms Similarly, when compared to the average of three well- known real estate companies in Vietnam, all three numbers in the profitability ratios segment are extremely high In Dat Xanh, the net profit margin was roughly 0.37, with an average of 0.28 Additionally, return on asset and equity were proportional to net profit margin and have

a higher ratio

0.4 0.3 0.2 0.1

Liquidity Ratios

——_

Avg

=——1.1 Current Ratio 1.2 Quick Ratio

——1.3 NWC to TA

Profitability Ratios

a

——“~—

—4.1 Net Profit Margin—— 4.2 Return on Assets 4.3 Return on Equity

4 5

The two criteria, asset management ratios and debt management ratios, show a significant difference In term of debt ratios, Dat Xanh had higher average in both periods interest earned ratio and cash coverage ratio Since the difference between these two indices is so great, the number jumped into the double digits, 11.02 and 13.08, respectively The average business had a single digit and a description of 7.06 and 4.74 Although the disparity between the other two indicators is not significant, these factors in Dat Xanh were lower than the average The debt ratio, for example, was 0.55, while the average was 0.58 When mention Asset management ratios, the fixed asset turnover ratio in Dat Xanh was more than double the market (2.43 vs 1.20) and the total asset turnover ratio is higher than 0.04 with average, this number is small but this indicator is also a problem worth mentioning The average collection period in Dat Xanh was higher than three average company more than 100 days when

comparing

Leverage Ratios

15

10

5

—

0

——3.1 Debt Ratio

— 3.2 Equity Multiplier 3.3 Times Interest Earned Ratio

——3.4 Cash Coverage Ratio

Last but not least, Price earnings ratio in Dat Xanh was 6.63 that number lower than average

of three others famous Real Estate companies in Viet Nam was about 12.61

4 Company’s Financial Performance

From the above data and analysis, we can generally conclude about Dat Xanh’s financial statement through ratio analysis that:

+ Liquidity ratios:

The short - term solvency of Dat Xanh in three years 2016 - 2017 - 2018 developed quite positively The company could quickly pay off short-term debts and had a stable business operation The current ratio, however, was high, which meant that the current assets were still considerable That reflected the ineffective use of assets because those parts were not profitable

+ Asset Management ratios:

In 2016, Dat Xanh exploited the potential of fixed assets and had the best business performance By contrast, in 2017 and 2018, the sales were not very good and inventory was not reasonable The company should optimize the way of managing the inventories or offer promotions to reduce costs related to them Besides, Dat Xanh's turnover ratio was very low which showed that the company had a poor ability to recover customers’ receivables and debt The company may consider changing its credit policy to ensure money recovery time

+ Leverage ratios:

In general, Dat Xanh’'s leverage is relatively low and therefore, the financial risk was not too large In addition, in terms of the ability to pay interest, the company not only could pay it but also had enough cash available to handle interest expenses And the last one, from 2016 to

2018, the majority of the company’s assets were financed by equity

+ Profitability ratios:

In terms of profitability, although the net profit margin decreased slightly in 2018, the company, in general, had gradually controlled its expenses Hence, the company's business performance became better In addition, the company had made good use of the equity and total assets If the company wants to increase the rate of return on total assets, the company can increase the rate of capital turnover and return on revenue

lll ANALYSIS ABOUT BETA

DXG VNINDEX DaiyDXG Daily Market

03/01/2020 13.9 965.14 -0.027972028 -0.001582753